Money paid into personal account instead of business account

[GregLyall]

Hello,

I was wondering how to rectify a problem I have.
For some reason, money from a client has ended up in my personal account instead of my business account. I'm a one man business, so someone must have had my old details from when I was a sole trader. Is it just a case of simply transferring this money from my personal to business account? I don't want the money to form part of my own income if that makes sense.

Also, for paying myself the basic £8060 wage from the company, can this be paid out in one go, or does it need to be spread out during the year?

Also, I see from this website (cheapaccounting-co-uk/library-2016-directors-salary.php - notice the dashes instead of dots, can't post links until I reach 30 posts), that I need to:

• You have to file an RTI (real time information) return each pay period - remember there are fines if you file the RTI return late.

Do I need to do this?

Sorry if my questions sound basic, but I've only recently became a company!

 

[Newchodge]

Just transfer the money from one account to the other.

You can pay your salary in one go, as long as you specify that you are a director of the company. You will have to register the company as an employer and file RTI returns for every pay period. To do this you will have to use payroll software or outsource the task to a payroll bureau. HMRC have their basic tools software, which is free, but unwieldy. Brightpay software is free for a single employee. There is a charge when you get beyond a number of employees, I think, 5?

 

[STDFR33]

Paying yourself £8060 might mean you pay more in tax than you need to.

 

[UK Contractor Accountant]

I think, 5?

3

 

[GregLyall]

"Paying yourself £8060 might mean you pay more in tax than you need to."

Just with regards to that, I'm interested to see how this would happen?

Also, with the new dividend taxes in place, do I pay myself the dividend before tax to my personal account, and pay the 7.5% dividend tax in my personal tax return. Or is that 7.5% tax paid by the company?

 

[STDFR33]

If the company is just set up, you may have already used your personal allowance up.

You pay income tax via your tax return.

 

[GregLyall]

Oh, I see what you mean with regards to that.

So it is from the company account that I would pay the dividend tax from?

 

[TheCyclingProgrammer]

Oh, I see what you mean with regards to that.

So it is from the company account that I would pay the dividend tax from?

No, you would pay your personal tax from your own money. Set aside any money as needed when you pay yourself a dividend.

 

[STDFR33]

Oh, I see what you mean with regards to that.

So it is from the company account that I would pay the dividend tax from?

You can. But it will be a directors loan - which may have tax consequences.

You and the company are completely separate legal entities. You need to separate yourself from the company.

I think you'd benefit from some professional advice...

 

[Newchodge]

If you, as shareholder, receive dividends from your limited company, that is your personal income. You are personally liable for all tax payable on your personal income.

 

[DontAsk]

You should really have had a separate business account as a sole trader.
Even after two years Ltd we still get customers using the old account. A pain, but just transfer the money.
Don't forget to make full use of the £5000 tax free dividend.